skip to main |
skip to sidebar
"Never argue with a fool, because they will only drag you down to the level of stupidity, and then beat you with their experience."
Michel de Montaigne
Today was December Option Expiration Metals Takedown Part Deux. As you know the actual expiration will be next Tuesday.
The pampered princesses of Bloomberg TV spent most of the morning alternatively frothing and tittering about the protesters outside the NYSE.
And having been short stocks, expecting a hit on the metals, it actually was a fairly boring day.
So what next.
The shorts cannot possibly deliver the silver on the Comex to cover all the options and contracts, but that has not fazed them before. I have a running theory that says the Comex will default in an event or a scandal. I almost thought MF Global was it, but apparently not.
"Every thing secret degenerates, even the administration of justice; nothing is safe that does not show how it can bear discussion and publicity."
Lord Acton
Let's see how we go into the weekend. After Tuesday the adults on the US exchanges will be taking off for a long Thanksgiving weekend. That leave it up to Asia and Europe to carry on.
Tomorrow is option expiration on stocks.
The sell off today seemed a little 'technical' to me. Although the symmetrical triangle has broken to the downside, I don't count it ahead of an option expiration unless they can take it and book it into the weekend and hold it on Monday.
Next Tuesday is metal expiration on the Comex.
The December Option Expiration on the COMEX is next week.
US trading will be thin in the holiday shortened week.
Change is in the air. But the biggest changes come slowly, over a long priod of time, and then suddenly make themselves known when the truth is revealed.
I am showing the NAVs and their premiums in the morning and in the afternoon.
Even yesterday some of the premiums were contracting ahead of the hit on metals.
It's the scandal that keeps on giving.
A party associated with The MF Global Customer Coalition has sent a letter to Judge Glenn asking him to reverse the appointment of James Giddens as Trustee for the MF Global Bankruptcy case.
Apparently Mr. Giddens law firm's largest customers and his own clients in other matters are J.P. Morgan and Price Waterhouse.
J. P. Morgan at least has enjoyed a somewhat contentious relationship with the customers' interests so far. There is strong feeling that this represents a substanial conflict of interest, and has been carrying over into some of the statements and decisions that have been made by the trustee.
It will be interesting to see if the Judge concurs. I cannot determine the merits of this, obviously. But I could understand how customers might be concerned, especially given some of the more arbitrary actions of the past few weeks.
